“He was a very talented young boy and we were delighted to sign him. His twin sisters have been in the business a while.”

Another eyewitness, who also did not want to be named, said that apart from the two people who died, he saw two casualties who were children being taken away by ambulance.

A 23-year-old man has been arrested and remains in custody. He was found hiding in bushes near the scene as shown in the video below.

Police confirmed that officers were pursuing the car after the vehicle had been reported stolen.

A spokesman for the London Ambulance Service said they treated three girls at the scene for multiple injuries and they were all taken to hospital.

Tayla Goodman told Sky News she had approached an officer who informed her there had been a road accident.

She added: “But upon speaking to eyewitnesses, a chase from police started out at Penge East at Sainsbury’s and they said a child had been taken - how true this is I’m not sure, but then they moved up to Parish Lane and ploughed into a family.

“Some of the eyewitnesses said a man has been killed, I saw children running away from there in absolute tears, unable to speak, and then a lady ran out from across Penge East station, ran through the police tape shouting ‘that’s my baby, that’s my baby that’s been taken. That’s my baby over there’.